Advice 1: How to calculate the weighted average cost

Monitoring of the new market of goods and services begins with marketing research, which among other results has to provide the customer with a parameter that economists call the weighted average price.
How to calculate the weighted average cost
Instruction
1
The price of a certain type, which is calculated by dividing the total amount of all transactions with a specified financial instrument for a specific period of time, the total number of financial instruments on specific transactions, is called a weighted average price.
2
The average value is important in all areas of the economy. Accounting uses a weighted-average cost at the end of the month. It is calculated as "Balance at the beginning of the month + ward for the whole month." Remember the formula that calculates the weighted average price, as follows: x P1 X1 + P2 X2 x + ... + PNx XN, where X1, X2,..., X N - the prices at which sold goods of the same category within a short period of time (e.g., one quarter);P1, P2 ... PN "volume" of goods sold at fixed prices.
3
This definition is better to consider a specific example. Imagine an organization that for years has sold 15 caps for the quarter in three batches at different prices. For the first batch she sold 5 pieces of caps for the price of 330 rubles (without VAT), the price for 1 piece 64 rubles. For the second batch, sold 6 pieces at the price of 430 (excluding VAT), the price for 1 piece 70 rubles and the third party have sold 3 pieces at a price of 240 rubles (without VAT), the price for 1 piece of 80 rubles.Now calculate the weighted average price: 64 rubles x 5/15 + 70 rubles x 6/15 + 80 rubles x 3/15 = 65 rubles.
4
The volume of goods sold at a fixed price, defined as the ratio of the number of products to the total number sold during a certain period of time ( e.g., one quarter) of goods.Based on this formula, you can expect the average prices in different sectors of the economy. It remains only to substitute the desired values.

Advice 2: How to calculate market size

The volume of the market is the indicator telling you how much goods or services consumed in a geographical area per unit time. The concept of "volume" of the market is often confused with its "capacity", the difference being that the capacity is evidence of effective demand, the volume of really sold products or services.
How to calculate market size
Instruction
1
First you need to define the geographic area described by the market (or segment) and sources of information – as a rule, the results of surveys, studies, expert opinions, statistics etc. Determine the period of time that will be (usually the month, quarter or year) and the units in which you will measure the volume of the market. Can be in pieces or litres (when it comes to certain groups of goods), but rather in monetary units.
2
Evaluate possible sources of information and collect in sufficient for your needs, the amount of opinions of experts, statistics, survey data. You need to find the most accurate and, most importantly, check the data. In some cases, will have to do analytical work, comparing the disparate pieces of information and bringing all data into a common format (say, in rubles). There may be a number of difficulties, for example, the amount of market goods in General easier to calculate than market services. Also much easier to estimate the amount of the market or a sector in General, the volume of the market of a single product or (especially) services; in this case, most likely you will have to resort to methods of indirect assessment.
3
The resulting "raw" data you need to present several important indicators. The first is the total volume of the market in a given time interval, the dynamics of its changes in two or three preceding time interval and the forecast or trend the next. The second is the distribution of the total volume between territories, as a rule, show the share of large cities in the total volume), their dynamics and trends. The third indicator is the volume distribution of the market between the leading players (and therefore how varied their share in the past, what is the prognosis). The fourth – largest selling products or product groups and their share, respectively, the dynamics and prognosis. And finally, the fifth indicator (it is not necessary, because it requires a separate study, but very significant) – the ratio in the total volume of the market and its capacity.

Advice 3: How to calculate cost of capital

The rate of return paid to the investor as a fee for providing capital for enterprises that use this capital, the value of its price. For the investor the price of invested capital is the opportunity cost arising from the loss of the ability to use the funds in any other way.
How to calculate cost of capital
Instruction
1
When calculating the price of capital , find out in the first place, the composition of the funding sources to be considered, as well as those who can not be taken into account. Select the sources of funds for the use of which will not have to pay interest. This is the accounts payable for the payment of goods and services tax obligations. They result from the ordinary activities of the entity and in determining the price of capital not taken into account.
2
Expect the aggregate price of capitalon the basis of each funding source. The cost of capital from the bonds will be determined as follows: = (N x q + (N – P)/n) / ((N + 2 P)/3), where N – nominal bond value; R – the amount received from one bond; Q – value coupon interest rate.
3
When evaluating the cost of Bank credit in mind that the price of capital in this case will be determined by a complete return of the transaction, which depends on cash flow. If the enterprise-the borrower does not incur any additional cost, then the cost of the loan will equal the interest rate. In the presence of any additional costs the cost will increase. But, as practice shows, this difference is small - no more than 1-3 %.
4
When placing of ordinary shares the company also pays for attracting capital. This fee will be the amount of dividends. The cost of this source of Finance you can calculate as follows: = D / Pm (1 – L) + g, where C is the cost of equity capital; P - market price per share (the offering price); D – the value of the dividend paid in the first year, g is growth rate of dividend; L – the rate reflecting the costs of emissions (in relative value).
5
The aggregate price of all capital (all funding sources) you can define by the formula weighted arithmetic mean:SK = Sum (CI x Wi), where CI is the cost of each source of financing; Wi – share of each source in the structure of capital.

Advice 4: How to calculate overall profitability

In the process of activity of the enterprise must not only maintain records of business transactions, but also to carry out economic analysis of the final results. The analysis uses a different methodology, calculated economic indicators and, in particular, is determined by the overall profitability. This index characterizes the economic efficiency of the company during the reporting period.
How to calculate overall profitability
You will need
  • - the balance sheet of the company for the analyzed period(form No. 1 of financial statements);
  • - report on profit and loss for the same period(form №2 of financial statements).
Instruction
1
Determine the gross profit of the company for the analyzed period. The value of the amount of gross profit you take from the form №2 "Report about profits and losses"(line 29) financial statements.
2
Determine the average value of fixed assets as follows. In the balance sheet take values in line 120 "fixed assets" at the beginning and at the end of the period. Add up these two numbers. Divide the sum by 2.
3
Calculate the average value of current assets. They include inventories, work in progress and deferred expenses. Fold the data at the beginning and at the end of the period on the line 210 "Reserves" of the balance sheet. Divide the sum by 2.
4
Use the formula to calculate the total profitability robs=Pval/(Posn+Pobor)X100%, where:
- Pval - gross profit for the analyzed period,thousand RUB.;
- Fon - the average value of fixed assets in the analyzed period,thousand RUB.;
- Faber - average cost of current assets for the analyzed period,thousand RUB
5
Calculate the total return in the above equation, dividing the amount of gross profit to the amount of the average cost of fixed and current assets. Multiplying the resulting ratio by 100 to get the value of total profitability of the enterprises in per cent.
Note
Overall profitability characterizes the amount of profit that falls on each ruble spent fixed and current assets. The higher the ratio, the more effective use of production funds of an enterprise.
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